Mexico is in for some painful restructuring if U.S. President Donald Trump follows through with his protectionist threats.
But the nation also faces a unique opportunity to reduce its reliance on its American neighbor and shift its focus to the world’s No. 2 economy, China.
Mexico has some key advantages, despite all the doom and gloom since Trump’s election, according to Natixis SA in Hong Kong. The peso has depreciated 26 percent over the past two years, making Mexico’s goods more competitive; the country has undertaken past structural reforms on labor, energy and telecoms; and it has free trade agreements with 44 countries outside the U.S.
Now it’s time for Mexico to woo China, Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis, said in a report.